Dear LightingTaxDeduction.org,

What if my project cost is higher than the cap of $0.60/sq.ft.? How is the remaining cost treated tax-wise?

Answer: The remaining costs can be depreciated and claimed normally. So a qualifying project in a 100,000-sq.ft. building with a cost of $100,000 and 40% lighting power density savings could be eligible to deduct $60,000 in the taxable year the lighting is placed in service. The remaining $40,000 could then be deducted normally (i.e., capitalized and depreciated).

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